Outback Steakhouse sales increases drive Bloomin' Brands 2Q results

Outback Steakhouse sales increases drive Bloomin' Brands 2Q results

Bloomin’ Brands Inc. reported Wednesday a 24-percent increase in profit, driven by sales increases at its core restaurant chains — a result chief executive Liz Smith attributed to limited-time offers, restaurant revitalization efforts and creative marketing campaigns.

The Tampa, Fla.-based company, which operates Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Wine Bar, and Roy’s posted net income of $17.4 million, or 16 cents per share, compared with earnings of $14 million, or 13 cents per share, in the same quarter a year ago.

Bloomin’ Brands, which held its initial public offering Aug. 13 [6], reported total revenue of $980.9 million, or a 2.7-percent increase from the same quarter last year. The company’s core restaurants, which include Outback Steakhouse, Carrabba’s, Bonefish Grill and Fleming’s each saw same-store sales increases.

At Outback, same-store sales rose 2.7 percent, giving the brand its ninth consecutive quarter of growth, according to Bloomin’ Brands chief financial executive David Deno. Carrabba’s saw a same-store sales increase of 1.5 percent; Bonefish Grill reported a same-store sales increase of 2.1 percent; and Fleming’s reported a same-store sales increase of 6.8 percent.

During the earnings call Deno attributed the same-store sales increases to modest menu price hikes, as well as increased customer traffic connected to multiple marketing promotions implemented throughout the year. In particular, Smith said strategic moves, such as offering more healthful menu options and expanding happy hour offerings, have helped Bloomin’ Brands stay competitive.

“These initiatives are designed to broaden appeal, improve our value perception and increase traffic,” she said. “We will continue to improve our limited-time offers and marketing campaigns.”

In addition, Smith said, Bloomin’ Brands plans to expand Bonefish Grill and Carrabba’s Italian Grill, both of which are located mostly in the Southeast, into the rest of the United States in the near future.

Contact Erin Dostal at [email protected] [7].
Follow her on Twitter: @erindostal [8]